The City of Holland, a municipal corporation of Ottawa and Allegan
Counties, Michigan, its successors and assigns (hereinafter called
grantee) is hereby granted the right, privilege, and authority to
acquire, construct, maintain, and operate in, under, across, and along
the streets, thoroughfares, alleys, bridges, and public places as
the same now a exist or may hereafter be laid out in the Township
electric lines consisting of towers, masts, poles, crossarms, guys,
braces, feeders, conduits, transmission and distribution wires, transformers,
and other electrical appliances and all related appurtenances for
the transmission and distribution of electrical energy by any means
with all the necessary or desirable appurtenances for the purpose
of supplying electrical energy to the Township and the inhabitants
thereof, and to persons or corporations beyond the limits thereof
for any purpose for which electrical energy is now or may hereafter
be used, and the distribution of the same within, through, or across
the Township, all subject to such reasonable regulations as the Township
Board shall prescribe from time to time.
All such electrical equipment, services, and appurtenances shall
be constructed so as to interfere as little as possible with the proper
lawful use of the streets, alleys, and public places. Location of
all electrical equipment and appurtenances shall be made under the
supervision of the Township Board and shall be subjected to such reasonable
regulations as shall be prescribed by the Township from time to time
and shall be subject to all provisions of the ordinances of the Township
and of the laws of the State of Michigan.
The rights, privileges, and franchise hereby granted shall not
be construed to be exclusive and the Township Board hereby reserves
the right to grant similar rights, privileges, and franchises to any
other person or persons, firm or firms, corporation or corporations.
Said grantee shall save the Township harmless from any and all
liability arising in any way from negligence in the erection, maintenance,
or operation of any of the electrical distribution equipment and/or
appurtenances.
Whenever said grantee shall begin the erection of any electrical
distribution equipment or appurtenances, it shall promptly and diligently
prosecute the work to completion and leave the streets, alleys, and
public places where such work is done in as good condition of repair
as before said work was commenced. If the grantee shall fail to complete
such restoration within 30 days after the completion of the erection
of any electrical distribution equipment or appurtenance to the reasonable
satisfaction of the Township, then the Township may at its option
cause such restoration to be done and the grantee shall in such event
pay to the Township all costs thereof in the itemized amounts reported
by the Township to the grantee. Such payment shall be made within
30 days after mailing of the itemized report to the grantee. Should
the grantee elect to move any of its electrical distribution equipment
because of street construction or the placement of other municipal
utilities, the grantee shall move such electrical distribution equipment
at its sole expense provided, however, if (a) the electrical distribution
equipment is located at the proper location in the right of way as
specified by the applicable county and/or local standards; and (b)
an engineer representing the Township certifies in the exercise of
reasonable engineering judgment that it is necessary that such equipment
be moved for such construction or placement of utilities to proceed,
then such equipment shall be moved at the expense of the Township
or its third-party contractor(s).
Whenever in this franchise reference is made to the Township
or the grantee, it shall a be deemed to include their respective successors
or assigns of either and all rights, privileges and obligations herein
contained by or on behalf of the Township or on behalf of said grantee
shall be binding upon and inure to the benefit of the respective successors
or assigns of the Township or of said grantee whether so expressed
or not.
Grantee shall furnish electrical energy to all customers requesting
such service within the Township pursuant to distribution line extension
rules and regulations adopted by the grantee, which said rules shall
apply uniformly to all customers and potential customers of the grantee.
The furnishing of such electrical energy shall be in a continuous,
adequate and workmanlike manner except for interruptions caused by
acts of God, riot, war, strikes or other causes beyond the control
of grantee.
The rates and charges for electrical energy and other commodities
or services provided by the grantee within the Township shall be based
upon the actual reasonable cost of such commodities and services and
shall not exceed the rates and charges for similar commodities and
services to similar customers within the grantee unless, as a result
of peculiar or unforeseen circumstances, such costs are greater than
within the grantee, in which case such additional costs may be charged.
In the event that the Township does not agree to such additional rates
and charges, grantee and the Township agree that the questions of
whether there are peculiar or unforeseen circumstances in the Township
which occasion additional costs and whether the charges related to
such costs, if any, are reasonable may, at the option of the Township,
be submitted to binding arbitration under the rules and procedures
of the American Arbitration Association or its successors.
In the event that the grantee shall seek to increase any rates
or charges for electrical energy and/or other commodities or services
provided pursuant to this franchise, it shall notify the Township
in writing at least 15 days before the effective date of such increase.
Such notice shall specify all changes in rates or charges sought by
the grantee. In the event that the Township does not agree to such
changes, it may, at its option, submit to binding arbitration under
the rules and procedures of the American Arbitration Association the
question of whether the proposed rates or charges are in compliance
with the criteria and limitations referenced in Section 8 above. Pending
outcome of such arbitration, grantee may institute such changes and
shall hold all funds represented by any rate or charge increase in
a special interest bearing escrow fund, for refund, in whole or in
part, with interest, if the result of the arbitration is to deny all
or part of the rate or charge increase.
Grantee shall promptly furnish to the Township the annual report
of the Holland board of public works and the audited financial statement
of the Holland board of public works for each year of the term of
this franchise.
In the event that the grantee shall provide secondary services
related to its electric generating facilities (such as district heating),
such services shall be furnished to customers within the Township
on the same basis as the same are offered to customers within the
grantee. In the event of the availability of such services, the rights
herein granted to a the grantee shall be deemed to include all rights
reasonably necessary to provide such services to customers of the
Township.
The grantee shall make due provision for the passage of any
structure over or under its lines by the raising or protection of
such lines as may be necessary to accommodate such passage at the
expense, however, of the party requesting the movement of the structure.
Plans showing the location of overhead and underground lines
and appurtenances installed in public rights-of-way and public places
by grantee shall be filed with the Township within 15 days following
installation.
Grantee shall furnish and install street lights within public
rights-of-way and public places within the Township at the request
of the Township Board subject to such rates and charges for the same
as are customary throughout the grantee's service area.
This franchise shall be irrevocable for a period of 30 years
commencing with the date the same is approved by the electors of the
Township at a duly called special or general election within the Township,
provided that the same is accepted by the grantee in writing and filed
with the Township within 60 days following such approval.
The foregoing ordinance was approved and adopted by the Township
Board on September 2, 1982. This ordinance shall be effective one
day after publication.